Did you know you know that depending on the country you live in, you might be able to diversify your superannuation portfolio with art?
Of course, conditions will apply, but in Australia (where I live), individuals with Self-Managed Superannuation Funds (SMSFs) can venture into a distinctive investment path by allocating a portion of their superannuation funds to art. This offers an alternative investment approach that enables individuals to broaden their portfolios and potentially reap rewards from the appreciation and lasting worth of art.
Several other countries around the world offer similar opportunities for individuals to invest their superannuation funds in art.
Some of those other countries are:
United States: In the United States, individuals can utilize Individual Retirement Accounts (IRAs) to invest in various alternative assets, including art. Self-directed IRAs allow individuals to have more control over their retirement investments and explore art as a potential asset class.
United Kingdom: The United Kingdom has a scheme known as Self-Invested Personal Pension (SIPP), which allows individuals to include art and other alternative investments within their pension portfolios. This provides individuals with the flexibility to diversify their pension investments beyond traditional options.
Netherlands: In the Netherlands, individuals can invest their pension funds in various asset classes, including art. Pension funds are managed by professional pension providers who offer investment options that cover a wide range of assets, including art funds.
Switzerland: Switzerland allows individuals to include art in their pension investment strategies through their Pillar 3a retirement savings accounts. Artworks are considered as movable assets that can be part of a diversified pension portfolio.
Canada: While Canada does not have a specific provision for investing superannuation funds in art, individuals can explore self-directed Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) to include art as part of their investment holdings.
Please note that the specific rules and regulations surrounding art investments within retirement accounts may vary in each country. It is advisable to consult with financial advisors or tax professionals who are knowledgeable about the regulations in your respective country to understand the eligibility criteria, limitations, and potential tax implications associated with investing superannuation funds in art.
Ask your fund manager about this today, and if you can do it, think about investing in art.
In Chapter 4 - Money Matters in Art Collecting in my new book, Art Collecting for Everyday People, we discuss this topic in more depth.
The book will be available on Amazon soon!
Image: Japanese woman with umbrella in snow (1930) vintage woodblock print by Utagawa Kunisada. Original public domain image from The Minneapolis Institute of Art. Digitally enhanced by rawpixel.